Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Lujan
LAST UPDATED
ORIGINAL DATE 2/20/25
SHORT TITLE Recruit & Retain Health Providers
BILL
NUMBER House Bill 393
ANALYST Klundt
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected $5,000.0 Nonrecurring General fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Department of Health (DOH) Health Care Authority (HCA)
SUMMARY
House Bill 393 (HB393) appropriates $5 million from the general fund in fiscal years 2026 and
2027 to the Department of Health (DOH) for Health Service Corps to support the recruitment
and retention of health care providers who treat rural or underserved populations or patients of
Federally Qualified Health Centers (FQHCs). No more than $200 thousand may be expended on
administrative costs.
FISCAL IMPLICATIONS
The appropriation of $5 million contained in this bill is a nonrecurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY27 shall revert to the
general fund.
DOH reported the department would require one FTE and approximately $100 thousand
annually to implement this bill.
House Bill 393 – Page 2
SIGNIFICANT ISSUES
DOH reported struggles to provide adequate healthcare to its rural and underserved populations
due to low population density and a shortage of medical providers. Many counties are designated
as medically underserved areas. To address these challenges, the New Mexico Health Service
Corps (NMHSC) was established to recruit and retain healthcare professionals in rural areas. The
program includes a stipend program, which provides financial support to medical and dental
students in exchange for service in underserved communities, and a community practice site
support program, which offers grants to healthcare facilities.
In FY15, NMHSC had a budget of $750 thousand. Following cuts in FY17, the budget was
reduced to $230 thousand for the stipend program, which now serves fewer participants. DOH
notes that between FY21 and FY24, an average of seven participants per year received stipends,
down from 27 in FY16.
New Mexico has 16 FQHCs and four FQHC look-alikes (community-based health care providers
that meet the requirements of the health center program but do not receive funding) that operate
over 200 clinics offering primary care services, including dental care, throughout the state.
KK/hj/SR